Bafin Issues Cease and Desist Orders to Ban Onecoin Activities in Germany
Germany’s Federal Financial Supervisory Authority (Bafin) has issued cease and desist orders against three Onecoin-related companies to keep Onecoin activities out of the country, effective immediately.
On Saturday, Bafin issued orders to cease and desist against Onecoin Ltd, Dubai; Onelife Network Ltd, Belize; And One Network Services Ltd, Sofia / Bulgaria. These three companies are part of the Onecoin network of companies “using a multi-level marketing structure both in Germany and around the world,” Bafin states. According to its official announcement:
“(Bafin) issued cease and desist orders against Onecoin Ltd, Dubai, and Onelife Network Ltd, Belize, holding the companies to dismantle their internet based “Onecoins” trading system and to end all sales promotion activities in Germany immediately.“
Bafin explains that this decision was based on the conclusion that the way in which these entities market Onecoin as “virtual currency” in Germany is included in the “Eigenhandel (own funds trading) of financial instruments”, as outlined in the German Federal Banking Act (KWG). “Eigenhandel as a financial service would have required prior authorization by Bafin,” the regulator further describes.
In addition, Bafin has also issued a cease and desist order against One Network Services Ltd for its “involvement in the unauthorized trading of ‘Onecoins’.”
Saturday’s actions follow the regulator’s orders against a Onecoin payment processor, IMS International Marketing Service Gmbh.
In February, Bafin froze the company’s bank accounts. Then, on April 5, the regulator ordered the company to “immediately cease and wind down its unauthorized money remittance business with investors in ‘Onecoin’ for Onecoin Ltd, Dubai,” according to Bafin’s announcement at the time.
On April 18, Bafin issued a direct order to Onecoin Ltd, Dubai, ordering the company “to immediately cease its business activities in Germany insofar as it is involved in the initiation, conclusion and settlement of the unauthorized money remittance business conducted by IMS through the execution of payments to IMS’ accounts and the issuing of payment instructions to IMS.”
With the orders to cease and desist from Saturday, Bafin aims to keep activities related to Onecoin outside Germany. Although these orders are immediately enforceable by law, “they may still be subject to judicial review,” Bafin wrote.
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